RBC slashes iPhone 5 sales forecast by eight million units

Analysts at RBC Capital Markets have slashed their sales forecasts for Apple’s iPhone 5, saying they now expect the company to sell 49 million units from December to February, from an earlier forecast of 57 million units.

The revised forecast was made by analysts Amit Daryanani and Mark sue. Writing in a note to clients, the pair stressed that iPhone 5 demand remains robust, and that supply constraints of certain components, particularly the retina display, were to blame for the revision.

But while December sales may be weaker than earlier expected, Mr. Daryanani and Mr. Sue said they now expect September sales to beat their previous estimate.

They said they now forecast that 24.8 million unitswill be sold from September to November, from their earlier forecast of 20 million. The iPhone 5 launched on Friday, Sept. 21, selling a record five million units during its first weekend.

But even if iPhone 5 sales miss expectations, Mr. Daryanani and Mr. Sue pointed out that a possible launch of the new iPad Mini could bolster Apple’s bottomline. The pair said that if the rumoured iPad Mini launches in the December quarter, it could add US$2-billion to Apple’s revenue during that quarter. They base that estimate on expectations it will sell eight million units during that timeframe.

Mr. Daryanani and Mr. Sue continue to rate Apple’s stock a buy. They have a 12-month price target of US$750 a share. That compares with a price US$627.95, which Apple was trading at as of 11:00 a.m. on Tuesday on the Nasdaq.